Getting to the root cause of your pay gap

Often, when we talk about pay equity, the discussion is focused on determining whether there are disparities in pay based on gender, race, or ethnicity and making pay adjustments to correct any unexplained differences. Rarely do we discuss the true drivers behind the identified disparities. Unexplained pay disparities do not occur in a vacuum. Achieving pay equity necessitates a close look at the full range of HR practices, including recruiting, hiring, promotion, terminations, and compensation practices.

Leverage employee data to identify trends

Federal contractors are required to collect and retain gender and race data to prepare annual affirmative action plans (AAPs). AAPs allow contractors to review a snapshot of their workforce along race and gender lines. Nonfederal contractor employers are not required to collect this data, but many do so voluntarily. A review of their workforce data, job groups, and goals analyses, in combination, quickly reveals whether certain negative trends exist. For example, women or minorities are concentrated in certain departments or levels within the company, which can limit their promotion and compensation potential.

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